When Propell was first approached by the body corporate of the Punta Montana sectional title scheme in Elfindale, there were numerous serious problems that need to be sorted out, and the scheme was in danger of losing value because of its state of disrepair, said Mandi Hanekom, operations manager for Propell.
“At the time this body corporate was in a terrible financial situation as the building itself was not in a good condition. It needed urgent repairs and maintenance such as the re-tarring of the common area, security fencing and gates, painting, etc. They were also in arrears with the municipality, and all owners were not paying their monthly levies. They, therefore, did not have enough funds monthly to cover their municipal accounts,” she said.
If this had continued for much longer, the municipality would have cut off their supply to services and possibly not considered a payment plan of any sort – this sort of situation can be dangerous because the municipality could then sue for the amount in arrears which could have led to homes being sold in execution, said Hanekom.
Within the first year of being on board, Propell took over the levy collections, provided the body corporate with three loans to settle the municipal accounts and worked with trustees to get the various projects going to get the scheme into a good state of repair once again.
This was a great boost to the body corporate’s financial situation as the units’ values were kept intact, and the scheme’s management with regards to levy collections was under control once again.
“Sorting out building’s financial situations often take considerable time, and the turnaround of a building, depending on how bad the situation is when Propell is approached, can take years. Fortunately, in this case, the financial situation is healthy once more and the owners can rest easy that the values of their properties have been maintained, and possibly now, even increased,” said Hanekom.